One of the most important processes in the supply chain is transportation, along with manufacturing and warehousing. It requires proper management of numerous tasks, including shipment tracking, carrier management, and delivery planning. Using spreadsheets and phone calls, small businesses with few shipments can manage these operations. However, as your turnover increases, it becomes clear that excel is insufficient for controlling your transportation processes and that you require something more robust. Specialized technology comes into play at this point. What precisely is a transportation management System, or TMS? A type of software called a transportation management system, or TMS, aids in the planning and execution of the physical movement of goods. It can be utilized by virtually any party that wishes to coordinate shipments, including manufacturers, distributors, and third-party logistics providers.
Features of the TMS –
The control tower capabilities of transportation management system are the most sought-after feature. A TMS control tower provides its users with valuable data from manufacturers to distribution centers, through delivery, and to customers by capturing data about goods in real-time using API or EDI technology. In our specialized overviews, you can learn more about EDI and API. Analytics on your supply chain performance, financial situation, and customer service issues can be generated from this data. which is where you begin your journey toward optimization. TMS is used by two main groups of people: distributors, manufacturers, and shippers; and providers of third-party logistics With a few exceptions to this rule, vendors typically provide the same platform for both groups.
Tools Included –
Essentially, a transportation management system (TMS) lets you plan, execute, and monitor your shipment procedures. Such software is frequently modular, allowing you to purchase distinct functions based on your requirements. In addition, your ecosystem of tools might include various ERP modules, warehouse management systems (WMSs), logistics management systems (LMSs), robotics system integration, and, of course, TMSs. There will be connections between some features and software for managing fleets. To ensure that you can easily connect to your WMS or ERP, vendors typically provide a large selection of possible integrations. Later, we will discuss those capabilities. Now, what kinds of tasks should a TMS cover? Features of transportation planning as a result, the first step in the transportation process is to create a transport request with information about the shipment and a quote. Carriers receive loads from shippers, who then have to plan the capacity and distribution of the cargo. Order entry, whether manual or automated, entails entering all necessary information, such as the commodity’s weight or quantity, and setting the current location and destination. A system frequently calculates ETA, assigns transport and driver, and generates a route automatically. This order is automatically routed to its scheduled transport if you have an integrated WMS.
